Rate change to balance costs for residents

Setting a goal date for the new stormwater rate structure, capping a potential property tax increase and getting an earful from residents concerned about a possible smoking ban kept Lubbock’s City Council busy Thursday.

A more than $200,000 tax break for X-Fab was passed unanimously with little public discussion. The agreement exempts the technology company from taxes on a new development, but not its existing property, for the next five years.

Another item expected to be discussed, modifications to the Omni Building, was postponed indefinitely.

Stormwater

The city of Lubbock won’t see a change in stormwater rate fees as soon as some members of the City Council would have liked, but not as late as Lubbock Power & Light leaders predicted.

The new stormwater rate structure was expected to debut on Oct. 1, but LP&L CFO Andy Burcham told the council earlier this month the municipal utility would not be able to meet the fall deadline, suggesting instead holding off on the change until the following October.

“The time frame between now and Oct. 1 is not realistic. I’m not sure it’s ever been realistic,” Burcham previously said.

The upcoming October deadline would not allow LP&L to conduct the testing necessary to adjust the billing system, he said.

The new system would also bring in new customers, which would further delay the process.

But, at a short work session on Thursday afternoon, the issue was resolved enough to push the debut date to Jan. 1.

“We worked heavily with LP&L to come up with a firm think-we-can-meet date,” said Budget Director Cheryl Brock. “In order to do that, we’ve got to make some changes in the proposed ’14-’15 budget because their revenues will be lower.”

Councilwoman Latrelle Joy led the charge to change the rate structure and, while not ideal, is satisfied with the January launch date.

“We looked at what would happen if we moved it to Jan. 1,” she said. “Could we still meet our deadlines? The staff has worked on it and we are still good position if it doesn’t happen until January.”

The new rate structure is designed to balance out the costs for residents.

Rather than charging residents a flat fee for each meter on the property, the new rate structure will be based on the amount of impervious land — artificial structures like sidewalks, driveways and parking lots.

Currently, residents pay $14 per month, or $168 per year, per meter.

Once implemented, smaller homes will pay $8.80 per month — or $105 per year — under the new rate model, while the city’s largest homes could see an increase of as much as $25.58 per month, or $306.96 per year.

The non-residential rate will be $25.58 per 5,700 square feet of impervious areas per month, but the cost caps out at 150,000 square feet. The city’s largest businesses will pay $690 a month compared to the $92.92 per water meter those companies currently pay.

Property tax

The proposed near-2.3 cent property tax increase will be the most city leaders can raise the tax after a 5-2 vote on Thursday night.

After Councilman Floyd Price’s motion to cap the potential property tax at 53.441 cents per $100 property valuation — .00327 of a cent shy of the state mandated limit — failed, Councilman Jim Gerlt’s motion to cap the possible increase at around 52.74 cents per $100 property valuation was approved with Councilwoman Karen Gibson and Councilman Jeff Griffith voting against.

Both of the city leaders opposing the set limit said they’d like to find other ways to find the necessary funds other than raising taxes, and Gibson will present her own version of the balanced budget at the next work session.

Griffith is still going through the budget, line-by-line, searching for ways to avoid the increase, he said. But, if there are no other options, Griffith said, he may vote for it in the end.

“Never say never,” he said. “I’ve always said that there are times when you need to raise taxes.”

Smoking

Around a dozen Lubbockites came to the Council Chambers to talk with city leaders about a more comprehensive smoking ordinance, some for and some against.

Comparing the potential law to the Civil Rights movement and child labor laws, West Texas Smoke-Free Coalition Chairman Matthew Harris said there is always opposition.

Still, one bar owner maintained some businesses would have to close their doors if a stricter smoking ban is enacted.

The Lubbock City Attorney is currently working on an ordinance amendment for the council to consider but there is no set timeline for presenting the new rule.